Attorney in fact's authority to hire persons; cost incurred to defend
actions of attorney in fact
Sec. 4.5. (a) An attorney in fact has the authority to employ
persons, including:
(1) attorneys;
(2) accountants;
(3) investment advisers; and
(4) agents;
to assist the attorney in fact in the performance of the attorney in
fact's fiduciary duties. Any reasonable costs incurred with regard to
services rendered for the benefit of the principal shall be paid from
the principal's asset holdings.
(b) Except as provided in subsection (c), if an accounting is
requested as set forth in section 4 of this chapter, costs incurred by
the attorney in fact:
(1) to defend the actions of the attorney in fact on behalf of the
principal with regard to the preparation of the accounting; and
(2) to defend any other actions of the attorney in fact on behalf
of the principal;
shall be paid from the principal's asset holdings.
(c) If a court determines that an attorney in fact:
(1) breached the attorney in fact's fiduciary duty or obligation
to the principal; or
(2) was engaged in self-dealing activities with the principal's
asset holdings;
the court may determine that the attorney in fact is responsible for
the payment of the costs incurred under subsection (b).
As added by P.L.165-2002, SEC.9.
Last modified: May 27, 2006